GOLD prices held steady on Wednesday (Oct 9) as traders awaited cues on US interest rate policy from the minutes of the Federal Reserve’s latest meeting.
Spot gold held its ground at US$2,622.24 per ounce by 0020 GMT, after falling more than 1 per cent in the previous session. US gold futures edged 0.2 per cent higher to US$2,641.00.
Minutes from the Fed’s September policy meeting are due at 1800 GMT. Traders will also scan the US Consumer Price Index report on Thursday and the Producer Price Index data on Friday.
Traders have now priced in a nearly 87 per cent chance of a 25-basis-point rate reduction in November, according to CME FedWatch.
Zero-yield bullion is a preferred investment amid lower interest rates.
Fed Bank of Boston president Susan Collins said that with inflation trends growing weaker it is very probable that the US central bank can deliver more interest rate cuts.
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Meanwhile, Atlanta Fed president Raphael Bostic said: “The labour market … is certainly slowed down, but is not slow.”
Gold exchange-traded funds registered a fifth consecutive month of inflows in September as North America-listed funds added to their holdings, the World Gold Council said.
In the Middle East, Israel Prime Minister Benjamin Netanyahu said Israeli airstrikes had killed two successors to Hezbollah’s slain leader, as Israel expanded its ground offensive against the Iran-backed group with a fourth army division deployed into south Lebanon.
Spot silver lost 0.2 per cent to US$30.63 per ounce. Platinum rose 0.6 per cent to US$955.90 and palladium fell 0.3 per cent to US$1,018.78.
China said on Tuesday it was “fully confident” of achieving its full-year growth target but refrained from introducing stronger fiscal steps, disappointing investors who had banked on more support from policymakers to get the economy back on track. REUTERS
